14 October, 2008

Maradona NEEDED

Legend has it that Maradona, one of the world’s greatest footballers, scored a goal using his hand during a 1986 World Cup quarter-final match against England, which was not seen by the referee and therefore allowed.
At the post-match conference, Maradona claimed that the goal was scored ‘a little with the head of Maradona and a little with the hand of God.’ So it was. The goal was later termed as ‘Hand of God’ goal. Maradona scored another goal in the match that was later voted as the ‘Goal of the Century.’ Argentina went on to win their second world championship title.
The financial world wants a Maradona now! It wants a ‘Hand of God’ to take it pass the crises that has been the creation of past so many years of financial mismanagement.
Maradona’s goal was an example of players skirting the laws of the game in the hope that the referee does not see. In context of the current financial system, we have already seen so many players (a.k.a. bankers and investment bankers) skirting the laws...driven by greed and hubris.
But with the pain that investors are feeling currently, will ‘greed’ that created so much money in the first place vanish anytime soon?
Not till we remain truly ‘human’. The inherent nature of the human being to speculate will never die. Greed will come back. And irrational expectations from money, stocks, bonds, gold, commodities etc. will again find their place under the sun.
The imperative for you, the long-term investor, is to arm yourselves against the hubris that too much of money creates. The idea is to stay away from greed and get over the fear factor. Invest within your means. Keep saving - and investing. When the cycle turns, and it will, you will be glad to have pulled the trigger.
But for this moment, the world financial system needs a Maradona...a hand of God.

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